Loose Leaf for Corporate Finance Format: Loose-leaf
12th Edition
ISBN: 9781260139716
Author: Ross
Publisher: Mcgraw Hill Publishers
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Chapter 26, Problem 2CQ
Summary Introduction
To explain: The characteristics of the firm with long cash cycle.
Cash Cycle:
The time period between the payment of cash to the supplier for the purchase of raw material and the receipt of cash from customer for the sale of product is known as cash cycle of a business. If the cash cycle is shorter, the amount of available cash is more and the company has no need to borrow cash from outsiders.
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Loose Leaf for Corporate Finance Format: Loose-leaf
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